TikTok wants a cut of the profitable video game pie. According to reports from Reuters, the video-sharing social media platform is currently conducting tests in Vietnam to allow users to play video games from the TikTok app. This is said to be only one step of the company’s plans to make a “major push” into the video game industry.
Right now, users can watch video game streams via the TikTok app but are not able to play games themselves. However, on Douyin, the Chinese version of TikTok, users have been able to play video games within the app since 2019.
ByteDance, owners of TikTok, offered few details about the company’s plans, except to say that it is testing HTML5 games, a type of game that allows users to play directly in a modern web browser without the need for third-party plugins. The company is utilizing third-party game developers, such as Zynga Inc., in its efforts. Rollout of the service could begin in Southeast Asia as early as this year. “We’re always looking at ways to enrich our platform and regularly test new features and integrations that bring value to our community,” a TikTok representative said.
Mobile gaming is a big industry. Estimates project the global mobile gaming market will reach $139.5 billion by 2026. With over one billion monthly users, TikTok is one of the most popular apps in the world. The marriage of the two seems almost inevitable, and the income potential of such a crossover (including ad revenue, in-app purchases, etc.) is the stuff investors dream about.
Even aside from this new video game venture, TikTok’s ad revenue is expected to reach $11 billion this year.
